November Home Prices and Sales Up Over Last Year

Today, the Illinois Association of Realtors (IAR) reported that year over year residential sales in the city of Chicago increased by 13.2%, with 1,881 sales in November 2016 compared to 1,661 sales in November 2015. The median sale price increased by 11.3% ($260,000 in November 2016 compared to $233,500 in November 2015). Homes in the city of Chicago were on the market an average of 45 days, down from 48 days last November.

Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate, stated, “The sharp uptick in both single family and condo home sales reflects consumers’ desire to enter the homeownership marketplace as opportunities present themselves, with the anticipated rise in rates and declining inventory boosting activity.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates positive growth in Chicago area* annual sales levels for December, January, and February with average changes expected to increase by 9.1% to 12.4% compared to last year. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +10.6% in December, +10.5% in January, and +10.3% in February.
• In November 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.1 months (down from 3.9 months a year ago). Months of supply for homes in all price ranges declined in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 143.1 in November (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was up 12.0% from November 2015.

Chaired by Mayor Rahm Emanuel, World Business Chicago is the public-private partnership leading the Plan for Economic Growth and Jobs in order to drive business development, cultivate talent, and put Chicago at the forefront of the global economy.

WBC’s “Economic Briefs” track indicators from month to month to gauge the strength of several aspects of Chicago’s economy, including unemployment, population, venture capital, job openings and new hires, home sales, tourism, etc. This data provides a clear analytic framework for specific Plan strategies and initiatives. For a summary of these and other economic indicators, refer to WBC’s monthly Chicago By The Numbers.